New Bookkeeping Act: Now your bookkeeping must be digital

In just one month, digital accounting will be mandatory for most companies in Denmark. On 1 July 2024, a new law for digital bookkeeping will be enacted. If you currently keep your accounts in Excel and are used to physical annexes, folders, and binders, you will likely have to switch to a digital bookkeeping system shortly.

But what exactly does the new law entail, which companies will be affected, and how can your company prepare in the best possible way? Here, we give you an overview of the most critical aspects of the Bookkeeping Act and provide sound advice for preparation.

What does the new Bookkeeping Act cover?

There are several reasons why digitization of bookkeeping will soon become a legal requirement for Danish businesses. Firstly, it is about reducing fraud and errors concerning VAT, tax, and accounting. In addition, the requirement is also a consequence of the government's desire to make everyday life easier for those who handle the bookkeeping. The legislation, therefore, also aims to create time savings in administration and make workflows more efficient by digitizing them.

According to the new Bookkeeping Act, you must use a digital bookkeeping system to prepare your accounts and store specific vouchers. Specifically, the upcoming law means that you must ensure that your company:

• Transactions are recorded in a digital bookkeeping system.

• Purchase and sales invoices are stored in a digital bookkeeping system.

In the future, your bookkeeping must be carried out electronically, and all annexes, invoices, etc., must be stored digitally. In addition, backups of your accounting records must be made on an ongoing basis and stored in the system for at least five years. Many of the processes associated with bookkeeping and reporting to the authorities will be automated using a digital bookkeeping software system. This can help free up resources so that you have more time to focus on your company's core business.

Who will be affected by the upcoming legal requirement?

When the new Bookkeeping Act comes into force on 01/07-2024, it will impact most Danish companies. Suppose you run a business in Denmark that needs to prepare an annual report for The Danish Business Authority. In that case, you must use a digital bookkeeping system, regardless of the company's size. Only if your company or association's net turnover has stayed within DKK 300,000 in the past two years will you not be affected by the upcoming law.

1. A standard system that has been approved by The Danish Business Authority and which therefore meets all the requirements of the new law.

2. A non-registered system, usually a specially designed system that is tailored to the specific conditions of the individual company. If you decide to use a system that is not approved, please note that it is your responsibility to ensure that the system complies with the law.

You can see The Danish Business Authority's list of approved bookkeeping software systems here.

Get access to various digital bookkeeping systems on navigator

If you still need to implement a digital bookkeeping system or are in doubt as to whether your current one complies with the law, you can receive help on kompasbank navigator. Here, you can get access to several different digital accounting solutions, such as Dinero, e-conomic, Billy, and Zenegy Numbers, which all meet the requirements of the new Bookkeeping Act.

Dinero

Dinero is an accounting program for small and medium-sized enterprises and can be used in all industries. They have made bookkeeping easy and fast so you can instead focus on what is essential in your business. It also works on mobile, so you always have your accounts and financial overview at your fingertips. Create a kompasbank navigator user and get a 50% discount on a Dinero Pro subscription for the first year.

e-conomic

e-conomic is the Danes' favorite accounting software. They offer the market's most flexible administration and accounting solution with all the necessary features so that you can invoice easily. If you have created a profile on navigator, you get the first 14 days free of charge at e-conomic. You can tailor e-conomic precisely to your company's needs and industry with more than 200 add-on modules and integrations. For example, you can add modules with bank integration and automatic expense management.

Billy

Billy is tailored for self-employed as well as small and medium-sized businesses. Send professional invoices, post bills, and settle VAT with just a few clicks. In addition, you can also pay salary to you and your employees and have it posted automatically via an integrated payroll system. Get a 50% discount at Billy for the first year if you have a profile on navigator.

Zenegy Numbers

Zenegy Numbers is packed with intelligent features that make bookkeeping and accounting more flexible and ensure you can spend time on your business. Connect your bank account with the system and experience how easy bookkeeping can be. Regardless of the type of expense — from the company's payment card to your receipts — Zenegy Numbers' automated bookkeeping function registers every transaction.

Get more information about all the accounting software systems here.